Performance of Recent High-Profile US IPOs Examined

Recent US IPOs have had mixed performance. Some have done well, such as Instacart and JFrog, while others, like Robinhood and Snowflake, have struggled. The performance of these high-profile IPOs is not representative of all IPOs and should not be used as a benchmark for future IPOs.

Recent US Initial Public Offerings (IPOs) have exhibited a mixed performance, with notable successes and setbacks. While companies like Instacart and JFrog have shown promising post-IPO results, others such as Robinhood and Snowflake have faced challenges. It is essential to understand that the performance of these high-profile IPOs does not represent the broader market and should not be used as a benchmark for future IPOs.

Figma's IPO, which occurred in 2025, serves as an illustrative example of the complexities in the market. Figma successfully went public despite a failed acquisition by Adobe, but its post-IPO performance has been influenced by market sentiment and hype more than fundamentals. Jai Das, president and partner at Sapphire Ventures, described the IPO as "40x oversubscribed and briefly surged to $125 per share before settling closer to $90" [1]. Das cautioned that while Figma's financials were impressive, the share price was also driven by human behavior and market sentiment.

Das noted that Figma's post-IPO performance signals a broader trend in the market. He observed that most 2025 exits have been dominated by acqui-hires rather than product acquisitions, particularly in the AI sector. For instance, Google reportedly paid $2.7 billion to hire Character.AI's team [1]. This trend is reflected in the fact that 40% of hedge funds now use social sentiment analytics for trading strategies [2].

The San Francisco-based company reported strong financials, with revenue of $749 million for 2024 and a four-year compounded annual revenue growth rate of 53% [2]. Despite these robust fundamentals, the stock's performance has been volatile, driven more by market hype than by the company's financial health.

Das also sees promise in sectors beyond AI, such as defense tech, SpaceTech, and crypto infrastructure. These sectors are poised for growth and could offer more sustainable exits in the coming years.

In conclusion, the mixed performance of recent US IPOs, exemplified by Figma's IPO, highlights the complex dynamics of the current market. The stock's movement is influenced more by hype and social sentiment than by fundamentals, a trend that is likely to continue in the coming years. Investors should remain cautious and evaluate each IPO on its own merits.

References:
[1] https://techcrunch.com/podcast/figmas-ipo-success-is-a-little-bit-of-a-meme-stock-says-sapphire-ventures-jai-das/
[2] https://www.benzinga.com/markets/equities/25/07/46748648/figma-could-become-a-meme-stock-beyond-all-comprehension-warns-elon-musks-x-product-head-nikita-bier